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2. A Glance at Akava 2012 Contents Akava 2012 3 Akava and the labour market 4 Extending working careers 10 Wellbeing at work 15 Salaries 19 Taxation of employees 24 Education 28 Entrepreneurship 31 Union membership 33 2 This publication can be found on the Internet at www.akava.fi/en/ Printing house: Kirjapaino Uusimaa, 2012 ISBN: 978-952-5628-52-4

3. A Glance at Akava 2012 Akava 2012 Akava, the Confederation of Unions for Professional and Managerial Staff in Finland, is one of the three independent trade union confederations in Finland Akava’s 35 affiliates have a total membership of 573,000 including approx. 107,000 student members Akava’s unionisation rate is about 70 per cent. 27 per cent of trade union members in Finland are Akava members. Akava represents the interests of professionals and managerial staff and others with a high level of education. Akava oversees its members’ economic, professional and other common interests. 3

4. A Glance at Akava 2012 Akava and the labour market Three out of four Akava members are in permanent full-time employment. Atypical work is common among young women. In 2010, 39,000 Akava members were employed on a fixed-term employment contract. Of these, 78% were unable to get permanent employment, though they wanted it. 50% of highly educated individuals work in the private sector. 29% are employed by local authorities and one in ten is employed by the government. 8% are entrepreneurs or self-employed. Akava members mainly serve in expert, teaching or managerial positions. The most typical for men are senior expert positions, and for women senior expert positions in teaching. In all age groups, the proportion of men serving in managerial positions is larger than that of women. At the end of 2010, 46,000 people with tertiary-level education were unemployed in Finland. The unemployment rate for this group was 4.6%. Since 1994, the unemployment rate among those who have completed basic and upper-secondary education has fallen faster than that among the highly educated. Long-term unemployment is on the increase. The average length of time that highly educated individuals are unemployed is a total of 40 weeks. Approximately 5,400 highly educated Akava members had been unemployed for over a year in October 2011. Employment rate among recently graduated The employment rate among those who graduated from university in 2005 was relatively good in 2010. In some sectors, people were clearly or slightly overqualified for their jobs five years after graduation. The situation was the reverse in a number of professional sectors, in which work tasks are felt to be too demanding. 4

5. A Glance at Akava 2012 Unemployment rate 1990–2010 by educational level, % 5 Source: Statistics Finland, Labour force statistics; Akava’s own estimation % Basic education only Upper secondary Lowest level of tertiary education and lower degree level All Higher degree level of tertiary education & doctorate (67,000) (111,000) (224,000) (35,000) (12,000)

6. A Glance at Akava 2012 Unemployed Akava members in selected fields, March 2012 6 Excluding persons laid off, situation 31.3.2012 Source: Statistics of Ministry of Employment and the Economy

7. A Glance at Akava 2012 Employment rate by age, 2010 7 Persons with at least a master’s degree Source: Statistics Finland, Labour Force Statistics 2010 Highly educated All wage and salary earners

8. A Glance at Akava 2012 Employment rate among older age groups, 2000–2010 8 Persons with at least a master’s degree Source: Statistics Finland, Labour Force Statistics 2010 55–59 years of age60–64 years of age

9. A Glance at Akava 2012 Employment relationships in Finland in 2010, % 9 Source: Statistics Finland, Labour Force Statistics 2010 Akava membersAll wage and salary earners

10. A Glance at Akava 2012 Extending working careers Over 70% of Akava members expect to remain in employment until they are at least 63 years of age. The employment rate of highly educated individuals over the age of 60 was approximately 20 percentage points higher than it was for other employees in 2010. 6% of highly educated individuals aged 58-62 are receiving a disability pension or are unable to work due to a long-term illness; the corresponding figure for all employees was 20%. In 2010, the average age of those retiring on an earnings-related old-age pension was 63.4. One in three retired people retired on a disability pension at an average age of 52. Due to this, the overall retirement age was 59.6. Mental health problems were the most common reason for highly educated individuals retiring on a disability pension. Job security, reducing time pressure and improving managerial and supervisory skills in particular are all factors that make it easier for people to cope at work. The majority, 63%, of Akava members are prepared to start a new job after receiving rehabilitation if the alternative is to retire on a disability pension. 60% of Akava members would be prepared to continue working after 63 years of age if they were to receive more annual leave or other time off. Almost 70% of Akava members are very or fairly willing to work after they retire on an old-age pension. If the funding of pensions has to be changed, Akava members would prefer their retirement benefits to remain the same and to pay more in employment pension contributions. 10

11. A Glance at Akava 2012 Persons retiring in 2010 and 2011 with a pension based on their own work history by pension benefit 11 Source: Statistics of Finnish Centre of Pensions In 2009 for the first time more people retired on a normal old-age pension than on a disability or an unemployment pension. In 2010 one in three retired people retired on a disability pension at an average age of 52. Average age of those retiring, years:200920102011 Old-age pension63.4 63.563.5 Unemployment pension60.3 60.961.7 Disability pension52.1 52.052.1 All59.5 59.659.8

12. A Glance at Akava 2012 Persons retiring on disability pension in 2001 and 2011, by main diagnosis 12  Both in 2001 and in 2011 approx. 23,000 persons retired on a disability pension.  In 2011 almost one in three of these was due to a mental disorder. Source: Statistics of Finnish Centre of Pensions

13. A Glance at Akava 2012 Average intended age of retirement of Akava members 13  Three in four persons think they will stay in working life at least until the age of 63.  The employee pension scheme reform of 2005 has achieved the desired results. Sources: *) Akava Member Opinion Polls **) Statistics Finland, Quality of Work life Survey ***) Survey by TNS Finland commissioned by Akava, autumn 2010

14. A Glance at Akava 2012 14 Total number of respondents: 1,094 Source: survey by TNS Finland commissioned by Akava, autumn 2009 Factors enabling Akava members to remain longer in working life

15. A Glance at Akava 2012 Wellbeing at work The average working week of Akava members in full-time employment was 40.6 hours in their main job. The working week of one in ten Akava members, and of one in five who are managers and senior officials, was longer than 48 hours. Akava members did more overtime than the average for all employees, and often without compensation. The weekly overtime hours of one in five Akava members added up to one working day, i.e. 7.4 hours. 7% of these received no compensation for the overtime. 15% of Akava members were compensated for the overtime in the form of money or free time. The working hours of senior employees are monitored less often than those of other employees. A total of 35% reported that their working hours were not monitored in any way. Senior employees experience more mental stress as a result of their job than other employee groups. 43% of senior employees experience rather a lot or a lot of mental stress as a result of their job. One in two experiences time pressure in the job fairly often or very often. Manual workers are more familiar with health and safety issues and the health and safety organisation than other employees. 24% of senior employees are not sufficiently familiar with health and safety documents and 27% believe there is room for improvement in the operations of the health and safety organisation. 35% also state that supervisors are not active enough when it comes to health and safety. 15

16. A Glance at Akava 2012 Experience of mental stress 16 Source: Finnish Institute of Occupational Health 2009 Experience of time pressure

17. A Glance at Akava 2012 Overtime work in 2010 17 Wage and salary earners working full time; overtime compensation in money or free time Source: Statistics Finland, Labour Force Statistics 2010 Akava members Employer All wage and salary earners Socio-economic groups

18. A Glance at Akava 2012 Persons who worked at least 48 hours/week, 2010 18 Wage and salary earners in full-time work Source: Statistics Finland, Labour Force Statistics 2010 Akava members: Employer: Position in organisation:

19. A Glance at Akava 2012 Salaries Akava members earned EUR 4,050 a month on average, with women earning EUR 3,600 and men earning EUR 4,520 a month in 2010. Women earn 80% of what men earn. The average monthly salary of all employees was EUR 3,090 in 2010. 50% of Akava members earned EUR 3,590 or more a month, with one in ten earning less than EUR 2,420 and one in ten earning more than EUR 5,930 a month. The average starting salary of an Akava member is EUR 3,270 a month, increasing to EUR 4,490 towards the end of the working career. Private sector middle management and corresponding experts in Finland do badly in European salary comparisons. Their gross salary is 84% of the salary of people in corresponding positions in western Europe. The corresponding comparison figure for employees other than manual workers (i.e. for approx. an average Finn) is 92%. The high price level and steep tax progression in Finland weaken the purchasing power of the salary of middle management and those who carry out corresponding expert tasks to 71% compared with western European countries. The corresponding comparison figure is 78% for employees other than manual workers. 19

20. A Glance at Akava 2012 Distribution of total earnings (without bonuses) 20 Total earnings in 2010 Wage and salary earners working full time; total earnings in table include bonuses *) From the beginning of 2010 the university sector is included in the private sector (private enterprises) Source: Statistics Finland, Structure of Earnings, 2010 Akava members All wage and salary earners in Finland F10 2,420 F90 5,930 F10 1,940 F90 4,500

21. A Glance at Akava 2012 Total earnings of wage and salary earners by level of education in 2010, EUR/month 21 Wage and salary earners working full time; total earnings include bonuses Source: Statistics Finland, Structure of earnings, 2010

22. A Glance at Akava 2012 Gross earnings per year in private sector 2011 Western Europe = 100 22 1) Comparable to Finnish employees with salaries of approx. 2,950 EUR/month; Grade 8 = Graduate/Administrator in Global job value framework of Watson Wyatt 2) Comparable to Finnish employees with salaries of approx. 5,290 EUR/month. Grade 14 = Middle Managers Source: 2011/2012 WWDS Global 50 Remuneration Planning Report

23. A Glance at Akava 2012 Relative purchasing power of salaries in private sector 2011 Western Europe = 100 23 1) Comparable to Finnish employees with salaries of approx. 2,950 EUR/month; Grade 8 = Graduate/Administrator in Global job value framework of Watson Wyatt 2) Comparable to Finnish employees with salaries of approx. 5,290 EUR/month. Grade 14 = Middle Managers Source: 2011/2012 WWDS Global 50 Remuneration Planning Report

24. A Glance at Akava 2012 Taxation of employees The Government is supporting the framework agreement reached for the labour market through reduced taxation for employees in 2012. The net salary of an employee covered by the contractual pay increases and changes in taxation who is earning EUR 3,000 per month will rise by 2.8%, or EUR 60, in 2012. The net salary of someone earning EUR 4,000 will rise by 2.7%, or EUR 71. One in five full-time employees in Finland is an Akava member. These employees earn a quarter of Finland’s entire wages and salaries bill, and pay one third of taxes and social security contributions paid by employees. Akava members account for 42% of state income taxes paid by employees. The income tax rate of someone with a monthly salary of EUR 3,000 is 29%, while an income of EUR 4,000 is subject to 34% income tax. Finnish employees have high and progressive marginal tax rates. The marginal tax rate indicates what proportion of additional income is collected as tax. At a salary of EUR 2,100, nearly 45% of additional income is collected as tax. The marginal tax rate is close to 50% for a monthly salary of EUR 3,400, and almost 57% when the salary exceeds EUR 6,100. In international comparison, the high and progressive marginal tax rates are evident in the fact that while low-income employees in Finland are taxed moderately by European standards and employees with average salaries are taxed near the European average, those who earn more than average are taxed quite harshly. 24

25. A Glance at Akava 2012 25 Pay and taxes: Akava members and other wage and salary earners Employees who have worked at least 6 months full time with income over 12,302 EUR per year Source: Statistics Finland, Income Distribution Statistics 2009

26. A Glance at Akava 2012 Average personal income tax for single wage and salary earners in Finland and in other Western European countries in 2011, % 26 *) Netherlands, Belgium, Spain, United Kingdom, Italy, Austria, Norway, France, Sweden, Germany, Switzerland and Denmark. Excluding Estonia. One-person household. Source: Taxpayers’ Association of Finland, International Wage Tax Survey 2011 Finland Other Western European countries*)

27. A Glance at Akava 2012 Average personal income tax rate in 2011 for income of 4,720 EUR/month 27 One-person household with income of 59,000 EUR per year Source: Taxpayers’ Association of Finland, International Wage Tax Survey 2011

28. A Glance at Akava 2012 Education In Finland, the proportion of people aged 25-64 with tertiary-level education has increased by 23 percentage points in 35 years. However, one in five remain with no educational qualification beyond compulsory education. 39% of Finns aged 25-34 have completed a lower or higher degree in tertiary education. This ranks Finland near the middle among OECD countries. The number of students in relation to teachers in universities has risen by around 70% in the period 1985-2009. 61% of university students and 59% of polytechnic students worked in 2009. The average duration of studies is 6.2 years in universities and 4 years in polytechnics. Nearly half of Akava members state that they need training to maintain occupational skills. 31% of employees with a high-level education attended non-degree training in 2011. For 4%, the training was not work- or occupation-related. Every tenth employee with a high-level education participated in work-related training either entirely or mostly during their own time. Responses of Akava members to questions regarding occupational skills and self-development : 90% feel that employers should place more emphasis on maintaining and developing employees’ occupational skills. 14% feel that being busy at work does not present any problem whatsoever when it comes to renewing occupational skills. 30% are of the opinion that no suitable continuing education is available. 10% feel that their competence is outdated and no longer meets the requirements of working life. 28

29. A Glance at Akava 2012 Persons with higher-degree level education in Finland and in some other countries in 2009 29 In addition to university and polytechnic degrees, higher-degree level tertiary education also includes some lowest level tertiary education qualifications, such as technicians and diplomas in Business and Administration Source: OECD, Education at a Glance 2011 25–64 years of age25–34 years of age55–64 years of age

30. A Glance at Akava 2012 Akava members and total labour force in 2010 by educational level, % 30 Doctorate Highest level academic degrees of licentiate and doctorate (scientific post-graduate degrees) Primary & lower secondary education Upper secondary education Gives general eligibility for tertiary education Lowest level tertiary education Vocational college education. Examples of vocational college qualifications include Technician Engineer, Diploma in Business and Administration and Diploma in Nursing Lower-degree level tertiary education Mainly polytechnic degrees and lower university degrees Higher-degree level tertiary education Mainly higher university degrees (master’s level), specialist’s degrees in medicine, graduate engineers Source: Statistics Finland, Labour Force Statistics 2010

31. A Glance at Akava 2012 Entrepreneurship About 24,000 Akava members, or 6% of the membership, are entrepreneurs and self- employed persons on a full-time or part-time basis. Over one third of these are women. Around half of Akava’s entrepreneurs operate in the field of social welfare and health care. 62% of Akava’s entrepreneurs are full-time and 38% are part-time self-employed persons and entrepreneurs. Independent work and fulfilling one’s dreams are motivating factors in entrepreneurship. The greatest obstacles to entrepreneurship have to do with financial livelihood. Entrepreneurship is seen as a natural step in career progression or as a way of becoming employed. Akava’s self-employed and entrepreneur members are more satisfied with their work than members who are employees. The key challenges faced by highly educated entrepreneurs are the differences in the social security benefits between employees and entrepreneurs, for example in unemployment security and sickness security, and reconciling work and family life. 31

32. A Glance at Akava 2012 Akava’s entrepreneurial/self-employed members, 2011 32 Among Akava’s membership there are approx. 24,000 full- or part-time entrepreneurs and self-employed persons. Source: Akava’s affiliates

33. A Glance at Akava 2012 Union membership Akava members are highly educated, and mainly join a union that corresponds with their qualifications or occupation. Akava has 35 affiliated unions, and at the beginning of April in 2012 there were altogether 573,400 members. The number of members is growing. The aim is to have 600,000 members by 2015. University and polytechnic students can join their respective Akava unions while they are still studying. Akava’s affiliates have 107,400 student members. Akava members are of the opinion that union membership brings general security in life. Private-sector employees value the earnings-related unemployment security, while public- sector employees value pay security and employment protection. Members are of the opinion that Akava’s success in representing its members’ interests has improved. Nearly half of Akava’s members are of the opinion that Akava has succeeded well or very well. Four years earlier, one in four felt this way. 33

34. A Glance at Akava 2012 Number of Akava members 34 Source: Akava’s affiliates

35. A Glance at Akava 2012 35 Membership of each of the three main employee confederations as a percentage of all wage and salary earners in Finland, 1970–2011 Source: Employee confederations’ cost distribution

36. A Glance at Akava 2012 36 Number of student members in Akava Source: Akava’s affiliates

37. A Glance at Akava 2012 37 Reasons for membership in an Akava member organisation, % Source: Akava Member Opinion Poll 2011

38. A Glance at Akava 2012 Akava’s organisation for negotiations 38 Akava Akava’s Public Sector Negotiation Commission JUKO The Delegation of Professional and Managerial Employees YTN Organisations’ collective agreements Employers and government Office for Government as Employer Commission for Local Authority Employers Church Confederation of Finnish Industries EK and its affiliates Central organisation agreements Tripartite agreements Coordination Collective Agreements (public sector) Entrepreneurs and self-employed persons Parliament, Ministries, Local Authorities Influencing legislation Employer organisations Collective Agreements Collective Agreements Employees in Technical and Basic Service Professions KTN Commission for Local Authority Employers Collective Agreements (public sector)

39. A Glance at Akava 2012 Akava’s affiliates 1.4.2012 and number of members 1.1.2012

40. A Glance at Akava 2012 Statistical information on Akava members 2011-2012 40